Calculating Gross Domestic Product (GDP) by the expenditure approach requires summing the value of
A) all income paid to individuals.
B) all transactions in the economy.
C) all final goods and services produced in the economy.
D) all expenditures by individuals.

Question

Quizplus · Accepted Answer

The expenditure approach to calculating GDP involves summing the value of all final goods and services produced in the economy, including consumption, investment, government spending, and net exports. Options A, B, and D do not accurately describe the components of GDP that are included in the expenditure approach.

Calculating Gross Domestic Product (GDP) by the Expenditure Approach Requires